Preventing bad Debt in UAE

Generally, creditor aims to enhance their businesses by starting a joint venture or providing a huge sum of amount to another person for starting a new business setup. But all didn’t go in the way you assumed. You were very passionate to have the business, as any businessman would be, however, all went in vain when you didn’t acquire the desired results.

In the initial process, the creditor use to send soft reminders to the debtor about the recovery of the debt. Mostly stubborn debtors take time to reply in order to earn some more time to return the debt. But in many cases, the debtor has no plans to return the debt due to various reasons, which motivate him to ignore the contact with the creditor.

There are various internet-based organizations that trace the location of the debtor and share it with the debt collection agency or the creditor. Once you trace the debtor you will have to share the information with the debt collection agency Dubai. In order to avoid bad debt, make sure to keep tracking the location of the debtor right after transferring his debt. This will reduce the chances of bad debt as the debtor will be attentive as well that he will be chased, just in case if he fails to return and try to vanish from the current location. The contract must be drafted in such a way that if the debtor refuses to return in the future he can be held accountable in front of courts.

Debt collection agencies came across various clients who were doing business with each other for a long time and mow they are facing bad debt. A weak contract also increases the chances of bad debt. So how would you prevent this problem from occurring to your business?

Another sign to check whether the debtor is ready to pay the debt or not is to monitor his pattern of installments. If the patterns are consistent then there will be very nominal chances of fraud. Just in case if installments are getting late for 30 days to 45, etc, this might be a warning. If you are facing any bad debt, feel free to contact our experts to tackle this case and let us bear the stress of debt recovery Dubai.